Tag Archives: Equifax

Last week, TransUnion predicted that the steadily declining number of mortgage loan delinquencies in the U.S. would fall to below pre-recession levels by the end of 2015. This week, Equifax released data that seems to go right along with that forecast.

Equifax announced more good news for the housing market on Wednesday, signaling that the broader United States economy may be on the rebound despite a disappointing first quarter 2014. In its latest National Consumer Credit Trends Report, the company reports that home finance write-offs year-to-date in May had to $43.5 billion, a decrease of more than 37 percent from the same point in time just one year ago.

Equifax announced its latest National Consumer Credit Trends report on Monday, which showed that the total balance of first mortgages increased by 2.8 percent from last year. The report found the balance increase was the largest year-over-year increase since September of 2008.

Experts at Freddie Mac and Equifax expect falling unemployment and economic growth to keep the housing market steady in 2014. This, despite climbing interest rates and anticipated growth in housing prices nationwide. While industry economists welcome the idea of a steady, slowly recovering housing market, they also have a checklist of housing and economic indicators they're keeping tabs on that could influence the pace of recovery.

Over the past few years, lenders and underwriters revamped their standards to reduce risk, but Equifax says there's one challenge many lenders still have difficulty combating--undisclosed debt. In a recent white paper, the credit bureau published results of its research into undisclosed debt and its recommendation for how to deal with this difficult hazard. Ultimately, Equifax said, ""The results are somewhat surprising and disturbing.""

Ideally, the government should back up to 35 percent of all new mortgages, according to the median response given in a recent Zillow survey which polled 108 economists, real estate experts, and investment and market strategists. The government currently backs about 90 percent of all new mortgages. The last time the government held a 35 percent share of new originations was in 2006 at the height of the housing bubble.

Mortgage delinquencies are on the decline, according to a report from Equifax. Home finance write-offs so far this year total $96.3 billion, down 22 percent from last year. The balance of mortgages in severe delinquency--those 90 or more days past due--is less than $300 million for the first time in five years, and Equifax's Amy Crews Cutts says current trends suggest we'll be at pre-recession levels of severe delinquencies by the end of 2014.

Equifax announced the availability of Equifax Dimensions, a new product created to deliver a more in-depth picture of past credit behavior to predict future trends. Users of the new solution can see up to two years' worth of detailed consumer credit activity, allowing them to identify consumer patterns such as a borrower's financial ""breaking point"" that will lead to default and which consumers are most likely to open new accounts.

The total balance for seriously delinquent first mortgages decreased to a five-year low as rising home prices reduce incentives to default, Equifax stated in its National Consumer Credit Trends Report. In June, the balance of loans 90 days or more past due or in foreclosure fell to $325 billion, down 27 percent from last year when the balance stood at $450 billion. Loans originated in 2010 or later represented about 7 percent of the balance for seriously delinquent mortgages.